Which of the Following Is True Given the Following Quotes

question 19

Multiple Choice

Which of the following is true given the following quotes for foreign exchange: 1.68-1.70$/£; 1.43-1.45$/€; 1.13-1.15€/£

• A) Triangular arbitrage is not possible
• B) Triangular arbitrage is possible and it involves exchanging $ for £
• C) Triangular arbitrage is possible and it involves exchanging £ for $
• D) None of these

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Definitions:

Supply-Chain Strategy

The planning and management of all activities involved in sourcing, procurement, conversion, and logistics to maximize customer value and achieve a sustainable competitive advantage.

Low Cost Strategy

A competitive business approach focusing on achieving the lowest operational costs and, consequently, offering products or services at lower prices than competitors.

Response

A set of values related to rapid, flexible, and reliable performance.

Differentiation

The process of distinguishing a product or service from competitors to make it more attractive to a particular target market.